With the new law, signed by Governor Schwartzenegger on July 8, 2008, this may never happen in California. This is an excerpt from the bill:
"Until January 1, 2013, this bill would require a legal owner to
maintain vacant residential property purchased at a foreclosure sale,
or acquired by that owner through foreclosure under a mortgage or
deed of trust. The bill would authorize a governmental entity to
impose civil fines and penalties for failure to maintain that
property of up to $1,000 per day for a violation. The bill would
require a governmental entity that seeks to impose those fines and
penalties to give notice of the claimed violation and an opportunity
to correct the violation at least 14 days prior to imposing the fines
and penalties, and to allow a hearing for contesting those fines and
This is California's attempt to totally prevent the problems happening in Detroit, with blighted neighborhoods and homes that sit unoccupied and are stripped. The Governor has been extremely proactive in supporting this type of legislation and the state appears to be taking pre-emptive action to mitigate against the worst that can happen in a strong foreclosure market. I do not believe that we will see $1 home any time in the near future. Dare to Dream.
Real Estate Consultant
RE/MAX Palos Verdes Realty
I read that article about the home in Detroit selling for $1.00. Pretty amazing price even if the house ends up needing to be bulldozed!
However, I do have to agree with Shel-lee. I don't THINK it will happen here, but if it does there should be quite a line of people trying to outbid each other!